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Gold Price Prediction 2012
Pinnacle DIgest writes: In this article, Adrian Ash explains the key pivot gold and most other precious metals made over the last 48 hours. Ash points to the fact that, from a technical standpoint, gold is oversold and volume is backing that up as increased purchases came in quickly from Asian countries. On top of that, institutional gold price predictions in 2012 remain very bullish.
Given that the drop in gold prices, over the last couple days, was so sharp and quick, it comes as no surprise how fast demand came back into this market. Gold still remains the currency of last resort.
The only thing keeping gold back from a significant recovery at this point is the strength in the US dollar. Given Europe’s debt crisis and the UK dipping back into a recession, the flight to safety has picked up with dollar purchases.
Ash points out the expectation for a QE3 in the US and potentially a rate drop to 0 in the coming months. these expectations, coupled with the potential breakup in the Eurozone, are keeping gold price predictions high for 2012.
Goldman Sachs has maintained its price target of $1840 per ounce for 2012.
Click here to read Adrain Ash’s article for more info on the outlook for gold.